Avoid the ATO’s increased tax penalties
Announced as part of the 2023-24 Federal Budget, increased funding has been provided to the ATO to scrutinise taxpayers who have a high-value outstanding debts of over $100,000 and aged debts older than two years where those taxpayers are:
- public and multinational groups with an aggregate turnover of over $10 million, or
- privately owned groups or individuals controlling net wealth of over $5 million.
Increased penalty rates
The Commonwealth penalty unit rate has increased from 1 July 2023 and currently sits at $313 per unit. This means that if you fall behind on your tax lodgements you can expect the financial penalties to increase substantially.
Penalties may be levied on late lodgements of returns and reports that include, but are not limited to:
- Activity statements
- Income tax returns
- FBT returns
- PAYG withholding annual reports
- Single touch payroll reports
- Annual GST returns and information reports
- Taxable payment annual
Small business lodgement penalty amnesty
The ATO is encouraging small businesses to take advantage of a lodgement amnesty that will run until 31 December 2023. The amnesty applies to tax obligations that were originally due between 1 December 2019 and 28 February 2022 and has been available since 1 June 2023. To be eligible for the amnesty, the small business must be an entity with an aggregated turnover of less than $10 million at the time the original lodgement was due.
Contact Lockwood Partners today if you require assistance.